Consumer Finances of Low-Income Families

Abstract

The Great Recession and the slow recovery afterward affected families from all socioeconomic strata. However, by many measures low-income families were hardest hit. To highlight the consumer finance challenges currently faced by low-income families we combine data from the Survey of Income and Program Participation with a review of several relevant research areas. These include real income declines before and after the recession; trends in being unbanked/underbanked; the use of credit and alternative financial services; savings and asset accumulation, including homes and vehicles; and health insurance. A brief discussion of future directions for research completes the chapter.